Automotive Sector Improves The Better Public Power Purchase
By : Ahmad Fadli And Aldi Firhand. A | Monday, October 02 2017 - 22:07 IWST
Chevrolet
INDUSTRY.co.id - Jakarta- Bahana Securities believes that the recovery in automotive sales will be an indicator of improved public purchasing power, particularly the middle class.
"A number of positive sentiments began to overshadow the Indonesian economy, the recovery of auto sales and motorcycles in the industry is an indicator of improved public purchasing power," said Plt Head of Research and Strategy Bahana Securities Henry Wibowo, quoting ANTARA, Monday (2/10).
Data from the Association of Indonesian Automotive Industries (Gaikindo) showed that car sales grew 5.6 percent in August 2017 compared to the same period last year or 96,461 units.
Thus, total car sales in the period from January to August were 715,291 units, up 3.8 percent on an annual basis.
Meanwhile, the Indonesian Motorcycle Industry Association (AISI) noted that motorcycle sales rose 5 percent over the same period last year to 554,923 units.
Thus, total motorcycle sales from January to August stood at 3.793 million units.
Bahana estimates that by the end of the year, car and motorcycle sales will be in the range of 3 percent-5 percent. Car sales growth is expected to be better than motorcycle sales due to government-run energy reforms since the beginning of the year.
On the other hand, according to Henry, the move by Bank Indonesia (BI) to cut the BI Rate (BI 7-Day Repo Rate) to 4.25 percent in September will be a boost for the recovery of middle and lower class purchasing power.
"One of the sectors that benefited after BI cut its benchmark interest rate in August and September was the automotive sector, because the purchasing power of middle class people in general bought by installment was quite helpful," he explained.
Read Also
Cipta Perdana Lancar Ready to Expand and Diversify for Sustainable…
Electric Cars are Indonesian Automotive Industry’s Future, President…
Minister of Industry Agus Optimistic 2024 Indonesia's Manufacturing…
Manufacturing Still Accounts for Lion’s Share of Exports: Industry…
DRMA Again Records Increase in Net Profit Up to Double Compared to…
Today's Industry

Rabu, 09 Juli 2025 - 08:55 WIB
Indonesia's First Harman Professional Experience Center Opens in Jakarta
PT Inti Megah Swara (IMS Indonesia) announces the grand opening of the country's first Harman Professional Experience Center, located at Desound Melawai, South Jakarta.

Senin, 09 Juni 2025 - 14:22 WIB
Savyavasa and Permata Bank Launch Exclusive Foreign Mortgage Program
Savyavasa, a luxury residential development by Swire Properties and JSI Group under PT Jantra Swarna Dipta, in collaboration with Permata Bank, presents a new solution for foreign nationals…

Rabu, 21 Mei 2025 - 10:09 WIB
Indonesia, Thailand Sign MoU on Health Sector, Focusing on Global Capacity, Collaboration
As a part of President Prabowo Subianto’s official visit to Thailand, both countries signed a Memorandum of Understanding (MoU) on health sector, in an effort to strengthen bilateral cooperation…

Rabu, 21 Mei 2025 - 10:06 WIB
Indonesia, Thailand Deepen Cooperation on Security, Trade, and Regional Stability
resident Prabowo Subianto has reaffirmed Indonesia’s strong commitment to deepening bilateral relations with Thailand during the meeting with Thailand’s Prime Minister Paetongtarn Shinawatra…

Selasa, 20 Mei 2025 - 12:44 WIB
Boediman Widjaja's Technology Ready to be Adopted in Jababeka Industrial Estate (KIJA)
In an exclusive seminar entitled "A Great Step: Boediman Widjaja Story - Going from Indonesia, Thriving in Singapore" held at the President Lounge, Menara Batavia, Boediman Widjaja, Founder…
News Comment